Why Shares of American Well Trounced the Market on Tuesday
One of a slew of recent initial public offerings (IPOs), telemedicine services provider American Well (NYSE: AMWL), did well on Tuesday. Its shares rose by over 8% on the day, easily eclipsing the gains of the wider stock market.
The catalyst for the latest pop seems to be two updates American Well issued about its IPO, one after market hours on Monday, and the other on Tuesday morning.
These revealed that the issue was upsized in both price and volume. Initial investors paid $18 per share, up from the previously anticipated $14 to $16. Just over 47.4 million shares were sold; 35 million was the original plan. Meanwhile, the IPO's underwriters fully exercised their right to buy additional shares (6.2 million, all told).
Source Fool.com
